Friday, June 20, 2014

IntelliCell BioSciences Gets Back on the Horse... Again (SVFC)

Well, though I give myself a C for timing, it looks like I'm going to be able to give myself an A for stock-picking. Back on January 27th I deemed IntelliCell BioSciences, Inc. (OTCMKTS:SVFC) was a compelling buy, and though SVFC was stagnant for a month after that, it looks like the stock's finally getting on its horse. If you didn't get it then, you may want to get in now.

If you're not familiar with the company, IntelliCell BioSciences is a stem cell company. It's not a biotech stock per se, as the organization doesn't do any stem cell R&D itself. Rather SVFC supplies biotechnology companies that are creating stem cell therapies with the "good" stem cells that developers want to replicate for its patients.

That's not what makes SVFC such an interesting trade at this point, however. In fact, there's not been any real news from the company - or even really about the company - in months. Yet, the stock's still a compelling near-term "buy". Why? Because (and this is a 100% serious answer) shares of IntelliCell BioSciences have dropped key hints that they're ready to go higher.

That hint is, today's (back to back with Friday's) surge out of a narrow range and above the ceiling at $0.0064. When I first started pounding the table in favor of SVFC, it was largely due to January's pop above that line. In February when IntelliCell BioSciences, Inc. shares pulled back below $0.0064, it would have been easy to throw in the towel on the stock. It also would have been a big mistake. See, though volatile, there was a rising support line in place that wasn't going to give up. In fact, a big part of the reason shares were able to muster as much strength as they have over the past couple of trading days is the push up and off of that line. The clincher is that there was plenty of volume behind this thrust. Take a look.

The point is, this second effort is the one that should get traction, doing what the first effort from late January couldn't achieve. Now that the ball's rolling again - and there's a heck of a lot less doubt - the would-be buyers are coming out of the woodwork.

As for a target, the 200-day moving average line (not shown on our chart) currently at $0.0146 might be a natural stopping and regrouping point. That would also be a key Fibonacci extension level, which are just natural "enough is enough" points for traders - a purely psychological (though still very meaningful) target-setting approach.

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